perils of coin collecting

After being an avid collector from early 70's to mid 80's or so, I basically left coin collecting to switch to stock market/ investing. I loved coins but prices were falling w/bullion and stocks seemed better.
Now here we are w/bullion up and my coin interest is back. I actually ordered some thing from the mint this year and have started attending shows again.
However, I wonder how wise it is to collect again. Even though I loved the coins the main purpose was to make money or shall I say grow my money. There are so many things in this hobby that make me wonder if it is really wise to be in.
1. It is so easy to get sucked in to the hype of certain things. I remember $130 73 brown Ike( which I still have one). And all the ms 63 and 64 $1 slabs that have fallen alot. Seems very similar to the ms 69/70 slabbed modern coins being sold now.
2. Many, it seems the majority of coins are overgraded and I feel almost no collectors are expert at grading what they buy.
3. The fake coins and fake slabs are very scary, you are buying slabs for protection, but what will you really have 8-10 yrs from now?
4. Many nice coins stored in flips (which basically everyone used) now have PVC damage. How do you know what you are using today is really safe.
5. Many coins are doctored(dipped, art. toned etc.) as they have always been which leads to much uncertanty about what you really have.
6. The need to slab everything for a true grade/or ultra high grade-I have never sent a coin in but wonder if I should. Have bu 72 dd and some nice barber stuff (unslabbed). The slabbed companies are making all the cash. Also have some early PCGS type coins that I bought slabbed in the 80's early days (green label stuff)

I'm just not sure of the logic behind buy and hold. It can be a cruel thing to find out what you save has deteriorated or declined in value. Buy and resell I understand (moving your items for a small profit in short order). I still love the coins and I really do like these forums, I can't wait to throw up some photos and see what I really know. Although you really don't know what anyone on here knows?

Just random thoughts,

LackLuster

 

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All your points seem valid enough for investors. I would think though that as an investor you would come into the coin market when prices are weak and bulk up on inventory when the items are going cheap and then sell in times like these when prices are high, at least for bullion. Now doesn't seem like the right time to get into bullion investing. Then again, I collect to collect, therefor have never lost a single cent on my many coins. Investing in the hobby of coin collecting involves a lot more than making a quick buck, as I'm sure you well know.
Guy~

 

I wasn't referring to the bullion aspect. I did sell most of my silvers bars at the last show. May unload the bulk stuff also. Although I held the gold. I was more referring to the collectible/investable coins. I have alot of nice things in the Lockbox.

I bought quite of bit (not big money stuff) $500 and under in the olden days. The question is was it really worthwhile? Now that I'm looking again I want to buy more because I did love the collecting aspect of the hobby. I'm just pondering the sensibility of it all> does that make sense?

Lack

 

Lackluster, it's too bad your interests changed in the mid eighties, as you stated. You could have had a superb collection of silver coins by now and it would be worth ten times what you payed for it. But your honesty compliments you. It does seem that your greed has surmounted your enjoyment for collecting be it coins and/or currency. This hobby is for the enjoyment, appriciation, and the love of fine art and design of coin and currency. I feel you have a ton of knowledge to share and we all appriciate photos very much with the stories that go with them. Come back to this wonderful hobby and vocation and see if you can't get some of that old time feeling back. zeke

 

I think the wisest thing you can do if you want to become an investor (or a collector), is to reeducate yourself, and spend a few hours a week just speculating. Ebay is sometimes a less than ideal marketplace for numismatic purchases, but I use it as a tool for what is hot, and what may soon become hot. I would gather opinions to see which magazines they'd recommend (I prefer Coinage). But there are many weekly publications that focus better on the investments rather than collecting better than monthly magazines.

 

I think you should walk away why you still can.
Coin collecting in a hobby not an investment vehicle.

 

To me the main purpose of collecting is the fun of the hunt and the actual collecting. I am not interested in buying and selling - my investments are not my coin collection, they are my hobby. I would like to think that some of the coins will grow in value - for my heirs, but not for me. Anything they get should be extra anyway. To me do not collect coins for investments. To me it is just a way to relax and have fun.

 

I would say yes, and no. You won't make a cool million overnight, but think if you would have bought $25,000 in '09-S VDBs five years ago! Even in lower grades, you could have made a 250% profit.

 

It has already been said. Your apparently on your way for ulcers or worse. If you are doing all that negative thinking about coins, stocks, the weather, your inlaws, there is really nothing in coins for you. This is a really nice hobby you know. BUT it is just really that, a HOBBY. Yes there are those that make money with this hobby but then too, there are people that make money on minature trains, full sized auto rebuilding, car shows, auto racing, skying, golf, etc., etc., etc. And to well are we all aware of the counterfeiting, faking, necessity for slabbing but again, this is a hobby. The same safe guards, problems, fakes, worries are used in many other sports and hobbies.
Your one statement of not sure of buy and sell is sort of evidense that all your thinking about is this as an investment.
Yet too if you would consider becoming a dealer, use ebay, sell at coin shows, open a coin and hobby store, then you would have more to worry about.

 

Photography can be a better hobby.
No WAY you will ever be able to afford all of it, no WAY you can learn all of it....
and the old tech just sent the silver down the drain.

The ancients didn't mind though as the breathing of mercury fumes at least let you think you were happy, right or wrong.

You always had eggs to eat (for coating the plates) and after you were gone people could review your efforts.

 

I agree. If it's investing you want this is not the short road. You seem to have done some research already but you also seem to follow the hype and buy after it's already going up or there and sell/get out too late. Your a trend follower and that is not a good investor imo.

To reply to your points:

1. Yes it is easy to get sucked into the hype and you seem to be learning that you do this...so DONT MS 70's is a great point I think.

2. Most people when selling there coins try to overgrade them and get as much money as possibled. Dont you when you try to sell your stuff whether its coins or a sofa? It's been this way and will be. Do you think the housing market for investors or any is any different?

3. Buy the coin not the holder. Learn about the coins and you wont get fooled much.

4. This has also been happening for along time...no not with PVC but wooden box's with velvet lining or manilla sleeves or...
Store your coins as best as you can is all you can do.

5. Again learn your coins. This stuff happens in other investments too...can you say Bernie Madoff with my money?

6. Many people dont slab their coins. I think it's good if your going to sell or giving as a gift but you certianly dont have to slab.

I "invest" in coins cause I enjoy it. The increase in value is a bonus when I get it.

Good luck

 

I enjoy reading your replies but think the point is a bit misunderstood. I did and do love collecting (coins are beautiful). Although I like the thought of making money over time.
I was a saavy buyer, so to speak, as far as getting a fair deal. I subscribed to the grey sheet for many years and bought all coins at show not by mail. So assuming you buy at greysheet (bid/or ask) here is my main point.

I pulled out a 1987 grey sheet. spot sil 7.62 spot gold 457.

1987 prices 2009 price
MS65 IOWA comm 375 bid MS65 100
MS65 Oregon Tr 675 bid MS65 265 bid
1961 pr. set 17 bid 13 bid
MS 64 1881s $1 150 bid MS64 47 bid
ms 64 1922p $1 170 bid MS 64 37 bid
bu 1885 $1 roll 500 bid 580 bid
1952 mint set 220 bid 660 bid
proof 65 Barber 50 4400 bid pr 65 3200 bid
ms 65 $21/2 ind 5300 bid ms 65 2,920 bid

A random sample-some coins have went up of course, but many have not.

Now supposing you had bought some of these as you collection. You got a good price and a beautiful coin, but after 30 some years you see the value. I can't help but think you may feel a bit different.
All I am getting at is the reality of it. Many of these beautiful/Rare coins have dropped dramatically and may do the same for you. Just something to keep in mind. Just don't assume that the value will go up.

Lack

 

Well,I'm not the worlds most knowledgable collector,but I learn more every day and keep trying to expand my knowledge,I recently got the silverbug also. Now silver is a game I'm trying to play more like an investment,It is seperate from my coin collecting,yet closely related. For coins I still like searchhing rolls and looking for errors and completeing sets,if I find an error that I don't want to keep It gets sold right away,a bird in hands worth two in the bush,and if I want to keep something I find I keep it. Not out much either way. If I'm looking to complete a set by buying a coin or two it often gets set aside until I find a good deal on the quality of coin I'm looking for,then I just assume a lose on the item. Silver is where I am trying to make money,and I'll haggle and argue a price till it's a good one for me or walk away,keep strict records of price payed and spot price that day etc.,etc. If the deal isn't looking like it could be a profitable one I walk away.Collect the coins for fun and if you want to make money on some keep them a seperate deal from where your real pleasures are.

 

Pull that same grey sheet out from 67 or 77 but 87 price's were hot and dropped alot around there.
Your comparing right before a large drop in the market to now after a softening of it.

 

you really can't compare the high prices of one decade to the lower prices of another decade.

prices are always in some sort of flux heck silver is about 200% of where is was earlier this year...it's always a good idea to watch what is actually going on before jumping into the fray.

I also suggest if you are merely looking for a profit in coins you buy low and sell high.

if your selling price is lower then what you paid you don't have to sell you can just hold on it it and enjoy your investment til the prices rebound and besides isn't your rnjoyment worth something? or do you never go out on the town? go to a movie? spend money for fun?

here's a simple way to make money if that's basically all your worried about.
buy a box of halves from a bank for face value search to pull all the silver out and cash the rest in then repeat over and over again and sell the silver for anything over face value and any selling expenses.

there PROFIT!

another note I would like to make is simply looking at your collection through only investor glasses is kinda silly as you will only be happy when the price is up and sad or mad when it's down is should make you happy as you can afford to buy more when the price is low and sell when high to make your profit since your profit is really made when you make your purchase not your sell.

 

Could not have said it better.

 

I don't collect coins to try to mass some kind of super valuable collection that if my finances ran out I could sell and live off of. I collect for the love of the hobby and the education it brings.
It is like when someone is growing a vegetable garden. They are not trying to survive off it but do it to have a fun hobby. :thumb:

 

Kudegras, your analogy on growing a vegitable garden is okay but many, many people do depend on them heavily for their food. No insult intended. zeke

 

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